Self-employed: how do you prove the income behind a daily allowance?

Start with the definition in the quote

Gross invoices, collected cash, taxable business profit and the amount specified in a policy are different figures. Before comparing daily allowances, ask the insurer what is insured and what documents establish that amount. A self-employed person may need to show both recognised status and the activity actually declared on the policy. If you also have employment or work through a company, do not assume the same income or insured person is covered under every arrangement. Put the legal form, occupation, income period and policyholder in your comparison before discussing a daily rate.

Compare the insured amount with the payment rule

Ask whether the policy is structured as loss insurance or a fixed-sum contract and what it does with third-party benefits. In the cited AXA conditions, section B4.4 addresses an agreed annual amount for named persons and distinguishes third-party offsets according to the type of cover. That example is not a universal rule for every product. Ask how eligibility, actual loss, residual earnings, incapacity percentage, waiting period and benefit duration interact. A number on the policy is not enough to infer the amount payable in a particular claim.

Build a worked example from the accounts

Assume a fictional sole trader invoices CHF 120,000 in one year and records CHF 45,000 of business expenses for that same period, before any other adjustments. The simple difference is CHF 75,000, not CHF 120,000 of earnings. Assume the following year a large subcontracted project lifts turnover, but also adds matching costs. More invoices do not necessarily justify more cover. Conversely, rent and software licences may continue during an absence. List those outgoings separately: the insurer must confirm whether any overhead protection exists. This arithmetic is neither an insurer’s income determination nor a forecast of payment.

Ask how a good or bad year affects the reference period

Rather than averaging several years yourself and treating that figure as accepted, give the insurer a consistent set of accounts and ask for the applicable reference period. Highlight a one-off contract or a recent drop in activity. Then ask whether the insurer would use the same basis to set the premium and to assess an actual claim.

Assemble the file before an interruption

Keep recent accounts, tax or AVS decisions when available, the policy schedule and an explanation of one-off items or changes in activity. Ask which documents are required if the business has a short history, seasonal revenue or no final assessment yet. Update the insurer when a reportable change occurs under your terms; do not wait for a claim to discover that last year’s reference amount is out of date. Compare the hypothetical residual income with household needs and continuing business expenses. Preserve separate reserves for the waiting period and for invoices that may be paid late even when a claim is accepted.